Which of the Following Would Be Represented as a Debit

question 95

Multiple Choice

Which of the following would be represented as a debit in the U.S. balance of payments?

• A) a U.S. purchase of cars from Italy
• B) a U.S. sale of beef to Israel
• C) transfers received by the U.S. government from foreign governments
• D) gifts received by U.S. residents from friends abroad
• E) income received by U.S. residents from overseas investments

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Definitions:

Collection Of Receivables

The process businesses use to pursue payments from customers or clients who have purchased goods or services on credit.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Short-Term Liability

Financial obligations due within a year, such as accounts payable, short-term loans, and other similar debts.

Working Capital

Current assets minus current liabilities, indicating the liquidity available for a company's day-to-day operations.